There would be no mischievous prestige about the office; there would be no attraction in it

On many succeeding occasions, their credit was of essential use to the Government. After exchange touched par in 1898, we see from the above table that gold began to flow in.

The difficulty and inconvenience to which this system has given rise in the United States are well known to those who are acquainted with the recent financial history of that country. If there is a run in India, assets must be available there in a liquid form equal to (v. ) Trade Bills on London in London 2½ │ negotiated in India 6½ │ (iv. ‘ A Governorship of the Bank of England he would take almost without salary; perhaps he would even pay to get it: but a minor office of essential subordination would not attract him at all. . And at first it is natural to ask why should everybody, or almost everybody, be well off together? Why should there be any great tides of industry, with large diffused profit by way of flow, and large diffused want of profit, or loss, by way of ebb? The main answer is hardly given distinctly in our common books of political economy. per rupee, it can never be worth while for the banks to buy Council Bills at a price which exceeds 1s.

Hankey, one of the most careful and most experienced of them, says in his book on the Bank of England, the best account of the practice and working of the Bank which anywhere exists–‘I do not intend here to enter at any length on the subject of the general management of the Bank, meaning the Banking Department, as the principle upon which the business is conducted does not differ, as far as I am aware, from that of any well-conducted bank in London. Such seasons of incipient alarm are exceedingly dangerous, because they beget the calamities they dread. Probably not one-thousandth part of the creditors on security of Overend, Gurney and Co. Ordinarily discredit does not at first settle on any particular bank, still less does it at first concentrate itself on the bank or banks holding the principal cash reserve. As in England, the Government do not maintain any specific reserve against these deposits.

The business of banking ought to be simple; if it is hard it is wrong.

│ Gross. In a panic, and at a general collapse of credit, no such banker will probably be found. [23] 5. The case is just the same if the banker wants to sell Consols, or to call in money lent on Consols. The banking history of England has been the same, though we have no country bank accounts in detail which go back so far. If the reserve be large, its magnitude sustains credit; and if it be small, its diminution stimulates the gravest apprehensions. ‘Does he not consider you as his agent, and in some degree responsible for the safety of the bills which you give him?–Not at all. At present there is at least the possibility of a great reaction. I can only reply that I propose to retain this system because I am quite sure that it is of no manner of use proposing to alter it. 3–31/32d. , and they have on an average 31,000,000 L.

If this loss on exchange (_i.

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